The market value of a leasehold property in Upton depends on how long the lease has left to run. If it is close to or fewer than 80 years you should expect problems on re-sale, so it is advisable to arrange for the lease to be extended ahead of purchasing. It is preferable to commence the process of extending the lease is when the lease still has 82 years to run so that formalities can be addressed well before the 80 year threshold. Statute entitles Upton qualifying lessees to an additional term of ninety years in addition to the existing term, at a nominal rent (no ground rent). The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Upton with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Regardless of whether you are a tenant or a landlord in Upton,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Upton valuers.
Last October John, came perilously close to the 80-year threshold with the lease on his studio apartment in Upton. Having purchased his flat 18 years previously, the length of the lease was of no interest. Luckily, he recognised he would imminently be paying an escalated premium for Extending the lease. John extended the lease just under the wire last May. John and the freeholder via the management company eventually settled on the final figure of £5,000 . If he failed to meet the deadline, the price would have increased by at least £900.
Mr S Garcia owned a studio flat in Upton in September 1996. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Comparative premises in Upton with 100 year plus lease were valued about £235,200. The mid-range ground rent payable was £45 collected quarterly. The lease elapsed in 2091. Taking into account 66 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of professional charges.
An example of a Lease Extension decision for a Upton property is Various @ Colombus Square in January 2012. the Tribunal calculated the premiums to be paid for new leases for each of the flats in Mariners Walk to be £3822 and the premium to be paid for the new lease of 2 Knights Court to be £4439. This case related to 13 flats. The remaining number of years on the lease was 76 years.